Strong demand for AI packaging and orders for emerging gate-all-around nodes drive revenue above high end of guidance

WILMINGTON, Mass. — (BUSINESS WIRE) — August 8, 2024 — Onto Innovation Inc. (NYSE: ONTO) (“Onto Innovation,” “Onto,” or the “Company”) today announced financial results for the second fiscal quarter of 2024.

Second Quarter Financial Highlights

• Revenue of $242 million, exceeding the high end of guidance, driven by additional pilot line expansions for high-performance computing using gate-all-around transistor architecture and high bandwidth memory (HBM) supporting AI market growth.
• GAAP gross margin and non-GAAP gross margin of 53%.
• GAAP operating income of $49 million and GAAP net income of $53 million.
• Non-GAAP operating income of $65 million and non-GAAP net income of $65 million.
• GAAP diluted earnings per share of $1.07 and non-GAAP diluted earnings per share of $1.32 were both above guidance ranges.
• Record cash from operations of $65 million, or 27% of revenue.

Second Quarter Business Highlights

• Revenue from specialty and advanced packaging customers set another quarterly record of $164 million aided by AI packaging customers.
• Closed over $300 million of volume purchase agreements issued by two customers for their AI advanced packaging and gate-all-around investments through 2025.
• Revenue from advanced nodes increased at multiple customers led by the Atlas^® and Iris^™ systems for emerging gate-all-around devices.
• Delivered industry-first JetStep^® X500 lithography tool specifically designed for next-generation glass substrates for panel level packaging.

Michael Plisinski, chief executive officer of Onto Innovation, commented, “The Onto Innovation team is working closely with technology leaders in advanced packaging and advanced nodes to drive yield improvements and enable smoother ramp times. As a result, we are seeing greater adoption of our metrology in packaging and new applications for the Dragonfly^® platform leading to stronger sales. As we look forward, we expect continued strength in advanced packaging and the adoption of gate-all-around transistor architecture at several customers to lead our revenue growth in 2025.”